The bottom of the real estate market is not here yet. The market is not even close. A good indicator of the bottom is the percentage of homes sold above and below the national median sales prices in the top Foreclosure markets of California, Nevada and Florida. For example, When these markets are healthy, the percentage of homes priced and sold sold above the national median sales price is about 40% of all sales. Builder activity in the hyper hot markets between 2005 and 2007 pushed this figure to 95%. The only property available below the national median sales price in those markets were mobile homes and ghettos, and even the ghettos were getting pricey. The glut of sales property in Florida, California, and Nevada is still priced above the National Median. The majority of properties in these markets must drop another 30% to get below the national median. On the other hand, the top five performing markets of McAllen Texas, Rochester NY, Birmingham Alabama, Syracuse NY, and Buffalo NY hav 90% of sales listings prices below the national median.
The King
3 comments:
King George
You are sooooo right. Lawrence Yun from the National Association of Realtors says the market is recovering and there is no recession. He should ask all the starving realtors. Using your criteria, the market has a way to go before hitting bottom.
My house dropped 120,000 in value and my equity line was cut off. Its going to get worse
This is really bad news. My house is as valuble as an apartment
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